 It's time for the Lawn Jean Chronoscope. A television journal of the important issues of the hour brought to you every Monday, Wednesday, and Friday. A presentation of the Lawn Jean Wittner Watch Company. Maker of Lawn Jean, the world's most honored watch, and Wittner, distinguished companion to the world-honored Lawn Jean. Good evening. This is Frank Knight. May I introduce our co-editors for this edition of the Lawn Jean Chronoscope? Larry Lusser of the CBS television news staff and Kenneth Crawford, National Affairs Editor for Newsweek magazine. Our distinguished guest for this evening is Anchor Nelson, Administrator Rural Electrification Administration. Mr. Nelson here in a big city, even the poor of the stuff take electric light and power for granted, but how much of the United States is actually without it right now? About 9% of the firms in America are still without electricity. Well, we talk a lot about aiding underdeveloped nations here on this program, and we've heard a lot about it in the United Nations. But how much would the electrification of the whole United States help us in building up markets here? Well, the electrification program has provided a tremendous market for equipment of all kinds. It's been estimated that for every dollar spent in distribution lines, there has been four dollars spent in equipment and wiring and one thing another, and in addition to that, the productivity of agriculture has been enhanced because of the availability of electricity. Mr. Nelson, isn't it so too that from now on, the ratio will probably increase because there is more equipment. Air conditioning comes along, things of that kind. I believe that on farms, you will find air conditioning moving into that field as well as in the city dwellings, and in addition to that, many other pieces of equipment, as the farmers are able to buy them, will be buying them, as has been the practice in the past. You're a farmer in Minnesota. What kind of equipment do you have on your farm, for example? And what are you planning to get? How long have you had it? 1938, we received electricity on our farm for the first time, and we have milking machines and water system. I have electric welder in the shop, electric drills of all kinds. In the house, we have a deep freeze in the basement, hot water heater, and in the kitchen, all of the appliances that you will find in a modern city home. It makes farming a wonderful occupation. In addition to that, we have television. Enjoy your programs. Well, Mr. Nelson, we've all, in driving through the country, seen poultry houses lighted at night, which is the most unusual sight, and I understand this is to help the production of eggs in hens. But actually, if electrification were expanded throughout the United States, would it bring down the cost of farm production? I think it has already done that. I believe the cheapest help that we have on the farm is electricity. Without it, we would need many more men per farm, and without it, we would not have been able to produce through the emergency period in keeping with the demands that has been made on agriculture for more foodstuffs. Just 9% could be electrified with that to bring down some of the screams of the farmers right now about low prices on farm production? It always helps. Mr. Nelson, how big a role has rural electrification had in all of this? How many farms have been electrified as a result of the activities of this federal agency? About 4 million farms have been electrified. The government has loaned about $2,700 million to these distribution systems, and it has been an extensive operation, one that no one ever realized would have gone as far as it has. Well, this system has been in for 18 years now. What is the attitude of this administration towards the rural electrification administration and the use of cooperatives in producing and selling power? This administration has gone full speed ahead. We have a loan program that I think everyone must agree is adequate, and we have tried to set up an organization that will give more for the dollar in our administration of rural electrification. We have reorganized our department, and we have not thrown out the career people. We have picked the best ones that we have put them in responsible positions, and they're doing a very good job for the farmers of America. How much have you cut down, Mr. Nelson? About 10%. We estimate we will save about $300,000 to $400,000 of administrative costs, but we're going to do as good a job, maybe better, by having a little better and a little more superior type of an organization, in my opinion. In all of this, actually, the initiative is taken by the cooperative out in the field, is it not? That's right, and we're encouraging the farmer to assume more and more of the responsibility of administration of his own system, because we believe, and I think everyone else recognizes, the future of our system will depend on, the wisdom of our own policy judgment back on the grassroots level. Mr. Nelson, we are told that Washington is crawling, as they say, with power lobbyists. Do we have some clashes with the public utilities as to who shall produce and sell this power? We haven't been bothered too much about that. We find that 50% of the power that is used on our systems is purchased from utility companies. We think the big battle is pretty much over as to controversy about who should do what, and we're trying to cultivate now an atmosphere of working together because we must do that, to say that we cannot, would be admitting defeat. You're making some loans also, are you not, to telephone systems? Yes, we have... So you have a clash there between private and public? Some, not too extensive. About half of our loans have been made to private independent companies, so it does demonstrate that we're working with both the cooperatives and the independence in our systems. Well, actually, sir, how much electoral generation power is there in the United States left? Have we got enough here to supply all the places that you'd like to put it in? I believe the supply of electric power has never been adequately reached because the demand continues to grow. You must build and build, and I believe it will require the resources of all of us to meet the demand because of the tremendous value of electricity. Mr. Nelson, this 10% which you have not yet reached, is that hopeless, or are you pressing into that area? Well, we don't think it's hopeless. Of course, the areas that are not served at the present time are very difficult areas to reach. They're not feasible, as far as a loan is concerned, and perhaps not exactly extensive farm operation areas and distances between farms is so great that the cost capital investment is so heavy that they're hard to reach. Where are these areas, General? Well, there'll be some all over the United States. I think it's estimated, for example, in Kentucky at the present time there's about 40,000 farms that are unelectrified, and that, of course, is quite extensive when we need to do something about it. You do have the materials now since the end of the war to get this stuff out there? Oh yes, there's adequate material available for all type of work. What is holding up the extension of rural electrification right now, sir? I believe the only thing that holds up the completion of the job is the fact that under the terms of the Act, the REA Act, loans are to be made only to areas and to projects that are considered to be feasible or will repay to the government with interest. So when these loans are calculated, if it appears that there is not an adequate income there, the result of it would be that we couldn't, under the law, make the loan. The projects, many of them are so successful with existing systems, they're beginning to reach out and try to pick up some of these un-served farms. What's your experience on repayment, Mr. Nelson? Do you get this money back? So far... There's about a $3 billion investment, I think you said. So far, the experience in that respect has been very good. However, it must be admitted that we have a five-year period to get our systems in shape before amortization payments come due. And it's evident that in some cases there will be projects in some difficulty, but we hope to help them organize their administration so they can repay. But up to date, there's only two-tenths of one percent of delinquency as far as interest and amortization is concerned. Well, sir, do we have enough electric generative power in the United States? Have we harnessed every bit that there is of hydropower? Well, no. There's hydropower still to be developed. And we hope one of these days there will be some cheaper means found, perhaps in atomic energy. I see. Well, as a last question, I'd like to ask you, sir, do you feel that the development of atomic energy for peacetime uses will have a great benefit to the rural areas of the United States? I think that in the field of generation of electric power, the atomic energy will someday be a blessing to the country. And certainly, if we can get electricity at a cheaper cost, there's no limit to how much we can use. Well, how far off do you think this is, sir? Well, I've heard some estimate two years, some 10, some 20. I wouldn't know. I'm not an engineer, but my guess is that it would be from 10 to 15 years. And you think that this would bring down the price of food and farm production all over the United States if this power could be extended to everywhere? Oh, very definitely. Well, in what particular way would it reduce costs? Well, for example, on the farm, we use it, as you mentioned, with our poultry. We use it with our milking machines. We grind feed. We might dry hay. We might dry grain. We might dry our corn. There'd be any number of things we could use it for if we could afford to buy it at the price that it's costing to generate it. It would be cheaper when you can have lots of small atomic plants. I think so. Your transmission costs would be cut down because it's assumed that the capital investment in generation through atomic energy will be much lower. Well, thank you very much, Miss Nelson, for being here tonight and bringing us this interesting information. Happy to be here. The opinions you've heard our speakers express tonight have been entirely their own. The editorial board for this edition of the Lone Gene Chronoscope was Larry LeSir and Kenneth Crawford. Our distinguished guest was Anker Nelson, Administrator Rural Electrification Administration. If you're contemplating the purchase of a very fine watch as a Christmas gift, it'll be profitable to compare the facts you have about Lone Gene watches with the facts you have about any other timepiece, and you'll find that the facts about Lone Gene are convincing proof that in a Lone Gene you have one of the world's very finest watches. 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